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The Bartlesville Development Authority (BDA) agrees to provide assistance to Phoenix Rising (PHX) at the Bartlesville Municipal Airport (BVO).

A Resident Recruitment Program incentive for PHX was approved by the BDA on Wednesday morning. BDA President David Wood says this is to help relocate 15 employees in support of an expansion opportunity with PHX, a maintenance, repair and overhaul (MRO) facility servicing Dassault Falcon jets

The BDA agreed to provide $150,000 in hangar lease assistance for over 48 months to facilitate Phoenix Rising's expansion into a second, adjacent hanger equipped for MRO operations as well.

PHX was founded by Warren Peck in 2002. The group moved to the BVO in 2005. BDA's Wood says PHX currently employs 15 people, with plans to double their headcount in 2022 to meet rising demand.

Over the next three years, Peck envisions a total PHX workforce of 45 skilled FTEs.

Hangar #1 and Hangar #6 are occupied by PHX, both leased from the airport at $4,680 and $2,120 per month, respectively.

In a statement, Peck said:

"Business is good! I would hire four mechanics tomorrow, but I can't find talent willing to move to Bartlesville."

Additionally, significant expansion will be contingent on requiring a favorable lease of now-vacant, adjacent Hanger #7, appropriately equipped for MRO operations (electrical capacity, shop air) instead of basic aircraft storage as in Hangar #1.

Peck and BDA believe the recruitment difficulties can be substantially overcome through the Resident Recruitment Program - a $10,000 cash incentive offered to relocating employees buying a home in Bartlesville. BDA proposes allocating up to $150,000 from the Economic Development Fund (EDF) to facilitate the move up to 15 employees over the next 12 months.

As the new employees is contingent upon exchanging occupancy of distant, ill-equipped Hangar #1 for the higher-value, adjacent Hangar #7, BDA engaged Airport Manager, Mike Richardson, and Bartlesville City Manager, Mike Bailey in a constructive dialogue.

Clearly, Richardson and Bailey see the expansion benefits to the airport and the community at large and want to see PHX in Hangar #7. However, the City of Bartlesville has just inherited the challenge of managing the airport, and substantially discounting a premium hangar reduces airport operating revenue, with shortfalls ultimately falling back on the City.

Peck, meanwhile, understands the new situation at BVO and sees PHX expansion as part of a longer-range revenue solution - more people/economic activity based on field, driving additional demand for hangars (lease revenue) and fuel-flow fees - a view shared by all concerned. Nevertheless, "market rate" for premium Hangar #7 is estimated to be $8,000 per month versus the $5,000 per month available for hangar lease. Bottom line: a $3,000 per month increase in rent will divert resources otherwise available for growth and impair the ability to capitalize on the unfolding opportunity.

BDA proposes allocating $150,000 from EDF to prepay the $3,000 per month difference between the "market rate" of Hangars #1 and #7 - facilitating the PHX expansion without offloading the cost on the airport - or ultimately, the City of Bartlesville.